8 April, 2008 – Arla has announced that increasing demand for products with a shorter shelf life is the rationale behind its decision to cancel distribution agreements in parts of Sweden and set up its own in-house system.
The dairies affected in northern and southern Sweden will be Gefleortens Mejeri, Milko, Norrmejerier and Skånemejerier.
Arla spokesman Tobias Wahlen told FLEXNEWS that the current system whereby Swedish dairies distributed some of its products was no longer compatible with the company’s increasing market share in short-life goods. The system, which was intended for longer life goods, meant Arla had already started to develop a separate distribution system for products with a shorter shelf life.
“The old system was intended for products with longer shelf life and not suitable for the new customer demands, and it is not efficient to run two systems forcing customers to put orders in two separate ways,” said Mr Wahlen.
“The new Arla system will build on the existing system for our traditional distribution area, creating opportunities for better service to customers and a wider selection of products to the consumers. The actual distribution will be run by Arla but also by external distributors.”
He also confirmed Arla was “open to renegotiate” distribution contracts from other Swedish dairies.